JC Master Legal News Issue 991

Key Takeaways for This Issue

The Beijing Stock Exchange is seeking public input on its rules for managing offline investors; individual investor account assets must be no less than RMB 10 million.
Reporters learned from several securities offices that the China Securities Association recently sought feedback from brokerage offices on the “Administrative Rules for Offline Investors in Public Offerings of Shares to Qualified Investors Not Specified in Advance and Listings on the Beijing Stock Exchange (Trial) (Draft for Comments),” with the aim of standardizing offline investors’ participation in the offline bookbuilding and allocation processes for shares publicly offered to qualified investors not specified in advance and listed on the Beijing Stock Exchange.
How can industrial parks achieve their “dual carbon” goals? And how can enterprises benefit from them?
Industrial parks serve as the primary platforms for industrial development, and the enterprises within them are typically major energy consumers. The introduction of the “dual carbon” goals has set new requirements for low‑carbon development in industrial parks. In July this year, the National Development and Reform Commission issued the “14th Five-Year Plan for Circular Economy Development,” which calls for organizing park‑based enterprises to implement clean production upgrades, actively harness waste heat and waste pressure resources, promote combined heat and power generation, deploy distributed energy systems, and integrate photovoltaic and energy‑storage technologies, thereby advancing the cascaded utilization of energy.
Deepening personal income tax reform hinges on fairly dividing the “cake.”
The latest round of personal income tax reform, implemented since October 2018, has now entered its third year. The benefits of the reform have been fully realized, and the public’s sense of gain continues to strengthen. At present, societal attention to personal income tax reform remains high. How to further deepen this reform, better leverage its role in regulating income distribution and promoting social equity, and enhance its contribution to national governance remains a key task in tax system reform.
Supreme People’s Court: Improving Judicial Protection Rules for Intellectual Property in Emerging Fields Such as Big Data and Artificial Intelligence
On the 21st, Zhou Qiang, President of the Supreme People’s Court, stated, while presenting to the Standing Committee of the National People’s Congress a report on the work of the people’s courts in intellectual property adjudication since the 18th National Congress of the Communist Party of China, that it is necessary to improve judicial protection rules for intellectual property in emerging fields and business models such as big data, artificial intelligence, and genetic technologies, and to study and refine judicial frameworks for the protection of algorithms, trade secrets, AI-generated works, and open-source intellectual property.

Finance & Capital Markets
The Beijing Stock Exchange is seeking public input on its rules for managing offline investors; individual investor account assets must be no less than RMB 10 million.
Reporters learned from several securities offices that the China Securities Association recently sought feedback from brokerages on the “Administrative Rules for Offline Investors in Public Offerings of Shares to Unspecified Qualified Investors and Listings on the Beijing Stock Exchange (Trial) (Draft for Comments),” with the aim of standardizing offline investors’ participation in the offline bookbuilding and allocation processes for shares publicly offered to unspecified qualified investors and listed on the Beijing Stock Exchange. The Rules stipulate that, aside from six categories of institutional investors—securities companies, fund management companies, trust companies, finance companies, insurance companies, and qualified foreign investors—other institutional investors must have securities account assets or net asset value of products under their management of no less than RMB 10 million; individual investors must have securities account assets of no less than RMB 10 million.
Clearly define the registration requirements and types of offline investors.
The reporter learned that the Rules set out specific registration requirements for offline investors, covering factors such as investment experience, credit standing, pricing capabilities, and the strength of their investment capital. Furthermore, they categorize offline investors eligible to participate in the offline bookbuilding and allocation processes for stocks issued and listed on the Beijing Stock Exchange into three main types: professional institutional investors, general institutional investors, and individual investors.
Among them, professional institutional investors refer to six categories of institutional investors—securities companies, fund management companies, trust companies, finance companies, insurance companies, and qualified foreign investors—as well as private fund managers, futures companies, and their asset management subsidiaries that comply with the relevant rules and are registered with the association. All other institutional offline investors, excluding professional institutional investors, are collectively referred to as general institutional offline investors.
The six categories of institutional investors listed above may, upon registration with the Association as offline investors, directly participate in the offline bookbuilding and allocation process for publicly issued and listed shares. Private fund managers, futures companies and their asset management subsidiaries, as well as general institutional investors and individual investors, may only participate in such activities if they meet certain eligibility criteria and obtain registration following a recommendation by a sponsoring securities office.
The Rules stipulate that individual investors must have securities account assets of no less than RMB 10 million; for other institutional investors—excluding the six categories listed above—their securities account assets or the net asset value of the products they manage must also be no less than RMB 10 million.
Requirements are imposed on bid‑based subscription activities.
The Rules set forth general and prohibitive requirements for the price‑quoting and subscription activities of offline investors in public offerings and listings, and impose distinct obligations on professional institutions, general institutions, and individual investors with respect to the basis for pricing. They also prescribe specific requirements regarding the establishment of internal control systems by institutional investors and their self‑assessment of suitability.
During the offline bookbuilding phase, participating professional institutional investors may submit a separate bid for each of the allocation‑eligible accounts under their management. Each bid must include information on the allocation‑eligible account, the price per share, and the corresponding number of shares proposed to be subscribed at that price. For any given professional institutional investor, the total number of distinct proposed subscription prices across all bids shall not exceed three, and the difference between the highest and lowest proposed prices shall not exceed 20% of the lowest price.
When participating in the offline bookbuilding process for publicly issued and listed shares, offline investors and relevant personnel shall not engage in any of the following behaviors:
(1) Using another person’s account, multiple accounts, or entrusting others to place bids;
(2) Disclosing this institution’s or one’s own bid price prior to the conclusion of the inquiry process; soliciting, collecting, or disseminating other investors’ bid prices; or engaging in price‑collusion among investors, among other such acts;
(3) Colluding with the issuer or the underwriter to fix bid prices;
(4) Engaging in quoting based on inside information or non-public information;
(5) Failure to conduct a prudent pricing process in accordance with the quotation evaluation and decision-making procedures;
(6) Lacking a pricing basis, failing to submit a rational quotation based on thorough analysis, or deliberately underbidding or overbidding;
(7) The intended subscription quantity was not reasonably determined, and the intended subscription amount exceeds the total assets or capital scale of the allocation recipient;
(8) Accepting financial assistance, compensation, kickbacks, or other benefits provided by the issuer, the lead underwriter, or other interested parties;
(9) Other circumstances involving lack of independence, objectivity, integrity, or impartiality.
Establish a classification and management system for offline investors.
The Rules stipulate that the Association has established a classification and management system for offline investors in public offerings and listings, publishing watchlists, anomaly lists, and restriction lists, and adopting differentiated self-regulatory measures.
An offline investor shall be placed on the watch list if any of the following circumstances applies:
(1) During the monitoring period, among the projects participating in the price inquiry, the number of projects whose final bids exceed the recommended price range provided by the internal research report or the valuation pricing model reaches three (inclusive) or more;
(2) During the monitoring period, among the projects participating in the price inquiry, the number of projects that have modified their quotations after submission reaches three (inclusive) or more, or the same project has undergone quotation adjustments three (inclusive) times or more;
(3) During the monitoring period, projects participating in the price inquiry exhibited a notably high degree of consistency between their bids and those submitted by other investors.
(4) Where the bidding behavior or bidding results of offline investors have attracted negative public attention and have had a certain adverse impact on the orderly conduct of new share offerings;
(5) Other circumstances that may give rise to unprofessional, non‑independent, or imprudent pricing, as well as situations that could disrupt the issuance process.
The Association, in collaboration with the Beijing Stock Exchange, will jointly establish criteria for identifying instances of markedly high quotation consistency among offline investors, as well as the corresponding investor proportion, and will make timely adjustments based on market conditions.
Offline investors who fall under any of the following abnormal circumstances shall be placed on the abnormal list:
(1) Being placed on the watchlist for two consecutive times, or being placed on the watchlist a cumulative total of three times (inclusive) or more within a calendar year;
(2) Failing to submit self‑inspection reports, rectification reports, and other relevant documents on time in accordance with the Association’s requirements, or submitting information or materials that are false, inaccurate, or incomplete;
(3) Failure to cooperate with the regulatory authorities or industry self-regulatory organizations in conducting supervisory inspections as required, or the occurrence of other clearly abnormal behaviors.
When the misconduct of offline investors adversely affects the orderly conduct of offline offerings, and such conduct is particularly egregious or involves serious circumstances, the Association shall, in accordance with the relevant provisions of its rules, place the investor on a restricted‑list and suspend its participation in the offline bookbuilding and allocation processes for publicly issued and listed shares.
In addition, the Rules categorize violations committed by allocation recipients managed by offline investors into two types: general violations and serious violations. For general violations by allocation recipients, the first violation within a calendar year will be exempt from penalty; however, upon recurrence, the investor may be subject to self-regulatory measures—being placed on a restriction list for six or twelve months—depending on the number of prior violations. As for serious violations by offline investors or their managed allocation recipients, the investor will be placed on a restriction list for a duration determined by the cumulative number of violations incurred during the same calendar year.

CSRC: The Beijing Stock Exchange’s technical systems are essentially in place, and all related work is progressing in an orderly manner.
CSRC: Promote the Smooth Implementation of the Beijing Stock Exchange’s Reform
On the 22nd, at the 2021 Financial Street Forum Annual Conference, China Securities Regulatory Commission spokesperson Gao Li stated that efforts are being made to ensure the smooth implementation of the Beijing Stock Exchange’s reforms. Adhering to the principle of seeking progress while maintaining stability, the CSRC will officely uphold the exchange’s market positioning of serving innovative small and medium-sized enterprises. On the basis of ensuring stable market operations, it will meticulously prepare in areas such as institutional frameworks, corporate readiness, and market infrastructure, strengthen policy communication, guidance, and interpretation, and make every effort to guarantee a steady launch of the Beijing Stock Exchange—ensuring that major initiatives are carried out smoothly and beneficial measures are implemented effectively—thereby enhancing the overall functionality of the New Third Board and further improving the coverage and alignment of the multi-tiered capital market system with the real economy.
CSRC: Continues to implement robust measures to support the reform, opening-up, and high-quality development of Beijing’s capital market.
On the 22nd, at the 2021 Financial Street Forum Annual Conference, China Securities Regulatory Commission spokesperson Gao Li stated that, going forward, the CSRC will continue to implement robust measures to support Beijing’s capital market reform, opening-up, and high-quality development, striving to make a positive contribution to the capital’s economic and social progress.
First, we will ensure the smooth and steady implementation of the reform of the Beijing Stock Exchange. Adhering to the principle of seeking progress while maintaining stability, we will officely uphold the exchange’s market positioning of serving innovative small and medium-sized enterprises. On the basis of ensuring stable market operations, we will meticulously prepare in areas such as institutional frameworks, corporate readiness, and market infrastructure, while strengthening policy communication, guidance, and interpretation. We will make every effort to guarantee a stable market launch, deliver on major initiatives with care and precision, and effectively enhance the overall functionality of the New Third Board, thereby further improving the coverage and alignment of the multi-tiered capital market system with the real economy.
Second, we will promote the high-quality development of all types of market entities. At present, the capital market is taking in-depth special campaigns on corporate governance as a key lever to further help listed companies in Beijing enhance their governance standards. By leveraging the capital market’s functions in equity and debt financing, as well as mergers and acquisitions and restructuring, we will better support Beijing‑based listed companies in improving their operations and achieving higher quality and greater efficiency. We will actively contribute to creating a fairer market environment in Beijing and encourage securities, fund, and futures institutions to participate in the city’s financial development. We will also support small and medium-sized securities offices in pursuing specialized and distinctive growth, urging them to strengthen their research and investment capabilities and financial services for companies listed on the New Third Board, thereby jointly advancing the development of the capital market in Beijing.
Third, we will continue to support Beijing in steadily advancing financial technology innovation. We will further refine the pilot mechanism for fintech innovation in Beijing’s capital market, encourage technology offices to actively apply for pilot programs, and, while ensuring risks remain under control, promote the digital transformation of core market institutions, securities and futures offices, and service providers in the region. At the same time, we will guide Beijing’s regional equity market to leverage big data, blockchain, and other cutting-edge technologies to build a new type of financial infrastructure, thereby further enhancing its capacity to serve small and medium-sized enterprises.
CSRC: Encourages securities offices to strengthen their research and investment capabilities and financial services for companies listed on the New Third Board.
On the 22nd, at the 2021 Financial Street Forum Annual Conference, China Securities Regulatory Commission spokesperson Gao Li stated that the CSRC supports the specialized and distinctive development of small and medium-sized securities offices, encourages them to strengthen their research and investment capabilities as well as financial services for companies listed on the New Third Board, and will work in concert to advance the development of the capital market in the Beijing region.
CSRC: Further refine the pilot mechanism for financial technology innovation in Beijing’s capital market to boost the enthusiasm of technology offices to apply for pilot programs.
On the 22nd, at the 2021 Financial Street Forum Annual Conference, China Securities Regulatory Commission spokesperson Gao Li stated that the CSRC will continue to support Beijing in steadily advancing financial technology innovation. The Commission will further refine the pilot mechanism for fintech innovation in Beijing’s capital market, encourage technology offices to actively apply for pilot programs, and, while ensuring risks remain under control, promote the digital transformation of core market institutions, securities and futures operating entities, and service providers in the region. At the same time, the CSRC will guide Beijing’s regional equity market to leverage big data, blockchain, and other technologies to build a new type of financial infrastructure, thereby further enhancing its capacity to serve small and medium-sized enterprises.

“China’s No. 1 Futures Office” Secures IPO Approval! Yong’an Futures Is Set to List on the A-Share Market, Marking a Leap Forward in the Development of China’s Futures Industry.
On October 22, the China Securities Regulatory Commission approved the IPO application of Yong’an Futures. According to the schedule, Yong’an Futures will list on the Shanghai Stock Exchange’s main board, becoming the third futures company listed on the A-share market, following Nanhua Futures and Ruida Futures.
Since last year, China’s futures industry has experienced rapid growth, with a significant improvement in the operational performance of futures offices. As the most profitable futures company in the country, Yong’an Futures’ successful IPO is bound to boost investor attention toward A-share‑listed futures companies as a whole.
“The No. 1 in futures” has arrived.
Public records show that Yong’an Futures was founded in September 1992. It is a state‑controlled, specialized futures company with a registered capital of RMB 1.31 billion. The company was listed on the New Third Board on October 28, 2015, under the stock code 833840. Its actual controller is the Zhejiang Provincial Department of Finance, and its major shareholders include Caitong Securities Co., Ltd., Zhejiang Provincial Industry Fund Co., Ltd., Zhejiang Oriental Financial Holdings Group, and Zhejiang Provincial Economic Construction Investment Co., Ltd.
Since 2011, Yong’an Futures has maintained a regulatory rating of Class A, AA, and has consistently ranked first in the industry for its overall score over many years. Thanks to its outstanding service to the real economy, robust investment research culture, and strong profitability, Yong’an Futures has become an industry benchmark, officely holding the top position in China’s futures sector year after year.
On September 9 this year, at the 96th review meeting of the 18th Issuance Examination Committee of the China Securities Regulatory Commission, Yong’an Futures’ initial public offering application was approved. On October 1, Yong’an filed to delist its shares from the National Equities Exchange and Quotations System.
According to the previously pre-disclosed IPO prospectus, Yong’an Futures plans to list on the main board of the Shanghai Stock Exchange. The proposed public offering will account for no less than 10% of the total share capital after issuance, with the post-issuance total share capital not falling below 1,455,555,600 shares. The proceeds from this public offering, after deducting issuance expenses, will be entirely used to replenish the company’s capital base, with specific uses including, but not limited to, the following areas:
1. Increase the capital of the company and its domestic and overseas subsidiaries, establish additional domestic and overseas subsidiaries and branch offices, and optimize the multi-tiered branch network system.
2. Promote the development and strategic deployment of innovative business lines, and drive the enterprise’s transformation and upgrading.
3. Increase investment in information system development to establish a robust mid- and back-office support framework.
4. Enhance the company’s market competitiveness through mergers and acquisitions.
The industry is entering a fast track of development.
Since the beginning of this year, China’s futures industry has posted impressive growth. According to the latest data released recently by the China Futures Association, as of the end of August, the total client equity across 150 futures offices nationwide reached RMB 1.17 trillion, up 55.12% year on year. From January to August, the industry’s aggregate operating revenue totaled RMB 30.805 billion, a year-on-year increase of 47.85%, while its combined net profit stood at RMB 8.565 billion, up 63.02% from the same period last year.
According to Yong’an Futures’ 2021 interim report, the company recorded total operating revenue of RMB 16.685 billion in the first half of this year, compared with RMB 11.095 billion in the same period last year, representing a year-on-year increase of 50.38%. Total profit amounted to RMB 895 million, up from RMB 527 million in the prior-year period, a year-on-year rise of 69.81%. Net profit attributable to shareholders of the listed company reached RMB 740 million, versus RMB 410 million in the corresponding period last year, reflecting an 80.24% increase.
On October 21, Nanhua Futures released its latest Q3 2021 report. For the period January–September this year, the company recorded operating revenue of RMB 6.877 billion, down 12.13% year over year, while net profit attributable to shareholders of the listed company reached RMB 171 million, up 153.76% year over year, with earnings per share of RMB 0.2831.
According to the performance forecast for the first three quarters of 2021 released by Ruida Futures in mid-month, the company’s net profit for the period is expected to range from RMB 360 million to RMB 390 million, representing a year-on-year increase of 173.46% to 196.25%.
A-share‑listed futures companies are set to attract greater attention.
Nanhua Futures and Ruida Futures were both listed on the A-share market in 2019. The listing of Yong’an Futures is expected to significantly boost overall market attention toward A-share‑listed futures companies.
Data show that, prior to its suspension on the New Third Board, Yong’an Futures boasted a total market capitalization of RMB 39.8 billion—significantly higher than Nanhua Futures’ RMB 7.6 billion and Ruida Futures’ RMB 12.5 billion. In terms of scale and profitability, Yong’an Futures is comparable to a mid-sized brokerage office, and its status as a leading player in the futures industry will further enhance the representativeness of the A-share futures sector.
At present, investor attention toward A-share‑listed futures offices remains relatively limited. Since Ruida Futures went public, only two domestic brokerage offices have issued four research reports, while Nanhua Futures has garnered just two reports focused on its IPO pricing. Despite the strong financial performance of both companies, few sell-side analysts provide ongoing coverage or follow‑up on their results.
Judging from their stock performance, both A-share‑listed futures offices experienced a surge followed by a period of volatile consolidation. However, since August, Ruida Futures has embarked on an upward rally, with its share price climbing from around 20 yuan to the latest level of 28.1 yuan—a gain of roughly 40% over that span, making for a notably strong showing.
“Previously, institutional investors paid relatively little attention to this sector, resulting in limited sell-side coverage. Following Yong’an Futures’ IPO, this situation is sure to improve,” a sell-side analyst told a reporter from Securities Times China.
On October 15, the China Securities Regulatory Commission announced that qualified foreign investors will be permitted to trade in three new categories of financial derivatives: commodity futures, commodity options, and stock index options. Participation in stock index options is limited to hedging purposes, and the measures will take effect on November 1, 2021. Industry observers believe this move represents another significant boost for the development of China’s futures market.
Industrial Securities recently issued a recommendation on Ruida Futures, noting that the company stands to benefit from three favorable industry tailwinds:
1) Increased volatility in commodity markets is giving rise to hedging and trading demand.
2) The expansion into new trading product categories is driving an increase in client base. Notably, the China Securities Regulatory Commission recently granted QFIIs access to three additional product types: commodity futures, commodity options, and stock index options.
3) With new businesses such as risk management and asset management entering the phase of earnings realization, we are optimistic about the profit growth driven by the performance‑based compensation in the company’s asset‑management business and the revenue uplift from its risk‑management operations.

Hong Kong Exchanges and Clearing Chairman Laura Cha: Enhancing corporate ESG performance helps boost market attractiveness.
On October 24, at the Third Shanghai Bund Financial Summit’s “Launch Event for the Research Report on Sustainable Disclosure Standards,” Hong Kong Exchanges and Clearing Chairman Laura Cha stated that in recent years, ESG investing has gained increasing prominence, with investor enthusiasm markedly rising. She emphasized that stock exchanges should assume responsibility for advancing green finance and ESG investment. In a video address, she noted that the Hong Kong Stock Exchange introduced several ESG‑related guidelines eight years ago and, in July 2020, further refined its ESG listing rules.
Shi Meilun stated that enhancing corporate ESG performance is the cornerstone of maintaining market indices and helps bolster the market’s attractiveness. The Listing Division of the Hong Kong Stock Exchange, in collaboration with professional organizations, has launched training programs tailored for senior executives of listed companies. She expressed hope that, by refining regulatory guidelines, ESG investing will flourish, contributing to a better society.

Xiao Gang: In the future, more capital may be allocated to securities‑related assets.
On October 24, Xiao Gang, a senior researcher at the China Finance Forty Forum and former chairman of the China Securities Regulatory Commission, stated that in terms of household wealth composition, real estate accounts for a large share while financial assets remain relatively small, with pension‑related wealth even smaller—indicating a heavy reliance on tangible savings and insufficient financial savings. This structure is far from optimal. Mr. Xiao emphasized that, going forward, the proportion of household assets allocated to financial investments should gradually rise, thereby enhancing retirement‑oriented savings. At the same time, the share of deposits is expected to decline, with more funds likely to flow into securities‑based assets such as bonds, equities, REITs, and other similar instruments. Notably, both individuals and enterprises will progressively reduce their allocation to real estate.
Commercial & Corporate
How can industrial parks achieve their “dual carbon” goals? And how can enterprises benefit from them?
Industrial parks serve as the primary platforms for industrial development, and the enterprises within them are typically major energy consumers. The introduction of the “dual carbon” goals has set new requirements for low‑carbon development in industrial parks. In July this year, the National Development and Reform Commission issued the “14th Five-Year Plan for Circular Economy Development,” which calls for organizing park‑based enterprises to implement clean production upgrades, actively harness waste heat and waste pressure resources, promote combined heat and power generation, deploy distributed energy systems, and integrate photovoltaic and energy‑storage technologies, thereby advancing the cascaded utilization of energy.
He Kebin, an academician of the Chinese Academy of Engineering and a professor at the School of Environment of Tsinghua University, stated at the 2021 China Ecological Environment Industry Summit Forum that achieving carbon peaking and carbon neutrality in industrial parks is a crucial component of urban, regional, and sectoral carbon reduction. Industrial parks play a pivotal role in addressing climate change and should therefore proactively embrace the “dual carbon” goals.
How can industrial parks achieve low-carbon development? How can energy‑use upgrades within these parks contribute to the realization of the “dual carbon” goals? And how can enterprises reap the benefits? To address these questions, a reporter recently interviewed representatives from relevant industrial parks and industry experts.
Clean production upgrades take many forms.
“We’ve been following the ‘photovoltaics plus energy storage’ model for many years,” said Zhai Sunhua, Deputy Director of Technology at Zhejiang Guanglong Energy Technology Co., Ltd. As an investor, the company installed an 800-kilowatt photovoltaic system on the rooftops of Jinsen Electronic Technology Co., Ltd. in the Jianshan New Area of Haining, Zhejiang, along with a 100-kilowatt/276-kilowatt-hour energy storage system—making it Zhejiang Province’s first user‑side “photovoltaics plus energy storage” project.
With the growing prevalence of distributed power generation, in some regions across the country, the grid’s capacity to accommodate surplus renewable energy fed back into the system has reached its limit, making it difficult for certain photovoltaic and other new‑energy projects to connect to the grid. By deploying complementary energy storage and implementing peak‑shaving consumption or staggered grid connection, both the strain on grid operations can be alleviated and the development of new‑energy projects can be further advanced.
As early as March this year, Haining City in Zhejiang Province established the nation’s first “source‑grid‑load‑storage integrated” demonstration zone in the Jianshan New Area. At the same time, it introduced policy and institutional measures mandating a “new energy + energy storage” approach, stipulating that, in principle, energy storage should be configured at 10% of the installed capacity of new‑energy projects. Since the establishment of the demonstration zone, an increasing number of industrial park enterprises have begun utilizing clean energy.
“Photovoltaics plus energy storage” is just one of the approaches that industrial parks are adopting to implement clean‑production upgrades. Since the announcement of the “dual carbon” goals, parks across the country have been actively pursuing low‑carbon production practices tailored to their specific characteristics.
The Zhangjiagang Economic and Technological Development Zone in Jiangsu Province has established a demand‑side management platform, with more than 270 enterprises now connected. The zone is actively promoting the utilization of new energy and the development of the energy internet, having invested RMB 8 billion to build a photovoltaic power plant within the park and concurrently deploying an independent fuel‑cell combined heat and power system, thereby maximizing the overall efficiency of energy use.
Shandong Wanhua’s Yantai Industrial Park has established an energy management system project team and built an energy management platform, enabling electricity monitoring for 80% of its electrical equipment. By leveraging this system, the park gains real-time visibility into power distribution and the load profiles of key equipment, analyzes energy losses under various operating modes, and identifies correlations between energy consumption and process conditions, equipment operating parameters, and operational settings. As a result, the park achieves annual energy savings of 15.293 million kWh, translating into cost reductions of RMB 10.858 million.
Promote the digital transformation of the energy sector
With the introduction of the “dual carbon” goals and the continued advancement of electricity market reforms, implementing clean production upgrades and enhancing energy efficiency have become imperative tasks for enterprises.
“Energy and electricity prices directly affect enterprises’ production costs, and under the current pricing mechanism, companies are becoming increasingly sensitive to energy‑related expenses. At the same time, the imperative of green development is compelling businesses to rethink how to enhance energy efficiency,” said Yang Di, head of the Industrial Sector Power Demand‑Side Management Promotion Center at the China Electricity Council.
Economic returns are the primary factor in corporate investment decisions. According to Zhai Sunhua, from a corporate perspective, as subsidies for distributed photovoltaic power generation phase out, the profitability of PV plants has declined significantly. For eligible owners of distributed PV systems, integrating energy storage not only boosts direct revenues but also helps spread and reduce costs associated with plant operations and maintenance.
As a user, Li Xuemin, General Manager of Zhejiang Haining Hejin Electronic Technology Co., Ltd., is concerned with more than just price. “Price is one factor; what matters even more is power quality, as well as the ability of ‘photovoltaics plus energy storage’ to serve as a backup and ensure continuous supply for existing grid power.” According to his research, the company’s rooftop solar system generates nearly 80,000 kWh per month. At an 15% discount off the grid tariff, this translates into monthly savings of between RMB 9,000 and RMB 10,000. Moreover, the “photovoltaics plus energy storage” solution reduces electricity costs for businesses and, crucially, enables continued power supply for a certain period after a blackout, ensuring uninterrupted operation.
“The smart transformation of industrial parks must first begin with the intelligent management of energy,” says Yang Di. He believes that for enterprises within these parks, adopting clean‑production upgrades goes far beyond simply saving electricity. By implementing digital energy management, the processes of energy generation and consumption become visible and quantifiable; moreover, data analysis enables targeted improvements in product quality and supports industrial upgrading and transformation.
In April this year, the Zhangjiang–Pinghu Energy Data Governance Laboratory, jointly established by the Pinghu City Power Supply Company of Zhejiang Province and the Management Committee of the Pinghu Park of the Zhangjiang Yangtze River Delta Science and Technology City, was officially inaugurated, embarking on pioneering cross‑provincial and cross‑city integrated energy data governance at the park level across the Yangtze River Delta region. The laboratory integrates energy data, government administrative data, and enterprise operational data, leveraging quantitative analysis and modeling to conduct research on energy data technologies and incubate digital energy products, thereby advancing the park’s low‑carbon and digital transformation and upgrading.
“Based on the current carbon‑emission profile of Zhangjiang Pinghu Park, the system projects that the park will reach peak carbon emissions by 2030,” Wu Jia, director of the Marketing Department at the Pinghu City Power Supply Company, told reporters. “According to the system’s recommendations, the park can adjust its energy‑use mix by developing rooftop photovoltaic systems and energy‑storage facilities, which are expected to reduce annual CO₂ emissions by 670.9 tonnes, enabling it to achieve peak carbon three years ahead of schedule.”
Building a New-Type Integrated Energy System
For a long time, the industrial sector in China has accounted for roughly 70% of total energy consumption, and it is also the primary source of carbon emissions. “Targeted carbon‑reduction measures in the industrial sector are crucial to achieving the ‘dual carbon’ goals. Green manufacturing and remanufacturing—grounded in the principles of reduction, reuse, and recycling—are the two key pillars for advancing a circular economy within industry. A circular economy that encompasses the industrial sector can effectively cut carbon emissions, thereby contributing to peak carbon and carbon neutrality,” said Lin Boqiang, Director of the Institute for Energy Policy at Xiamen University.
This calls for integrating clean‑production upgrades with green and low‑carbon transformation across park‑based enterprises during the 14th Five‑Year Plan period. Starting with the power sector, energy efficiency must be enhanced: on the demand side, continued efforts are needed to conserve electricity and reduce overall consumption, curbing waste and lowering energy use to advance energy conservation and emissions reduction; at the same time, the demand side should facilitate the uptake and utilization of renewable‑energy‑generated power, promote win‑win demand‑response mechanisms that align with renewable‑energy integration, and encourage innovative business models for clean energy, such as green‑energy certification, green‑currency schemes, and green‑certificate programs.
On this basis, industrial parks should also be encouraged to develop toward integrated energy services and to build next‑generation, comprehensive energy systems. “Integrated energy services represent a new model of energy provision designed to meet the diversified energy production and consumption needs of end‑users,” says Yang Di. He proposes two key measures: first, energy companies, manufacturing offices, and information‑service providers should be incentivized to pursue cross‑sectoral integration, establishing smart energy service platforms and leveraging market‑based mechanisms to engage all stakeholders in actively participating in demand‑side management; second, by constructing integrated energy systems, technical, institutional, and market barriers among electricity, heat, gas, and other energy subsystems should be dismantled, fostering complementary synergy and coordinated optimization across multiple systems, thereby enhancing energy efficiency and facilitating the absorption of renewable energy while ensuring energy security.
Moreover, the integration of energy production and consumption with digital technologies can spark unexpected innovations. Experts emphasize that advancing the digital transformation of the energy sector should focus on building an energy internet, promoting the application of modern information technologies—such as cloud computing, big data, the Internet of Things, mobile communications, and artificial intelligence—as well as advanced communication technologies in areas like system operation and control, and comprehensive energy services for end users. This will facilitate two-way flows of energy information and open, shared access, enabling flexible aggregation of diverse resources, intelligent decision-making in system operations, and convenient, efficient energy use for consumers.

Accelerating the global economy’s decarbonization! A global carbon market mechanism is expected to reach an agreement, and China has already begun exploring the internationalization of its carbon market.
The 26th United Nations Climate Change Conference (COP26) will be held in the United Kingdom from October 31 to November 12, marking the first climate conference since the Paris Agreement entered its implementation phase. On October 24, reports indicated that, thanks to Brazil’s softened stance on Article 6 of the Paris Agreement, the conference is poised to reach an agreement on a global carbon market mechanism—this is widely regarded as the event’s key highlight.
Recently, at a joint online press conference on biodiversity and climate change co-hosted by China’s Ministry of Ecology and Environment and the Chinese Embassy in the United Kingdom, relevant Chinese authorities stated that China has high expectations for the outcomes of the 26th Session of the United Nations Framework Convention on Climate Change. They emphasized that concluding negotiations on the rules for implementing the Paris Agreement—particularly resolving key outstanding issues under Article 6 and other core implementation provisions—will be a top priority of the conference.
The 26th Conference of the Parties on Climate Change is expected to reach an agreement on a global carbon market.
Article 6 of the Paris Agreement addresses global carbon market mechanisms and cooperation, aiming to foster a cohesive multilateral carbon pricing framework worldwide and enhance transparency in the global carbon market.
According to reports, Brazil’s softened stance on Article 6 of the Paris Agreement has raised hopes that the 26th Conference of the Parties to the UN Framework Convention on Climate Change will reach an agreement on a global carbon market mechanism.
This is not the first time the United Nations Climate Change Conference has focused on the global carbon market. At the 25th session of the Conference of the Parties, held in 2019, delegates engaged in arduous negotiations over the detailed rules under Article 6 of the Paris Agreement. However, due to Brazil’s reluctance to compromise with the European Union on these provisions, the talks reached an impasse, and no consensus was ultimately reached on a global carbon‑market mechanism.
On the eve of the 26th Conference of the Parties to the UN Framework Convention on Climate Change, the industry is once again hopeful that countries will reach a consensus on the rules for implementing Article 6 of the Paris Agreement.
On October 11, John Dutton, Secretary General of the International Chamber of Commerce, issued an open letter to climate ministers worldwide. In his letter, Dutton stated that, for both environmental and economic reasons, the global business community should urgently urge governments to reach a consensus on the implementation rules for Article 6 of the Paris Agreement.
Denton emphasized that, at present, most domestic climate policies fall short of keeping global warming well below 1.5 degrees Celsius by 2050. Accordingly, establishing an international carbon market is an urgent measure to accelerate the global economy’s decarbonization, and Article 6 of the Paris Agreement provides a robust framework for such a market.
Denton noted that research indicates that, if Article 6 of the Paris Agreement is implemented effectively, it could reduce the total cost of countries’ climate commitments by more than half by 2030 and save as much as US$250 billion annually for global climate action. Conversely, the cost of climate action in the coming years would rise substantially.
According to Refinitiv data, in 2020 the global carbon market expanded by 20%, reaching a total size of US$272 billion. As of 2020, the global carbon market encompasses one supranational market (the European Union), eight national markets, and twenty-four regional markets. The emissions covered by these markets account for 14% of global total emissions, while the populations in these regions represent roughly one-eighth of the world’s total population. Moreover, the GDP of the covered regions constitutes 37% of global GDP. It is thus evident that carbon markets play a pivotal role in determining whether the Paris Agreement’s emission‑reduction targets can be achieved.
Carbon emission rights inherently possess the characteristic of free international circulation.
Pan Yuhang, a researcher at the Kangqiao Economic Society and a postdoctoral fellow at the Faculty of Business and Economics of the University of Hong Kong, previously told a Securities Times reporter that linking international carbon markets requires countries to reach consensus on numerous aspects of market design—such as specific national emissions‑reduction targets, methods for accounting carbon emissions, and rules for allocating carbon allowances. “Even if agreement is reached on these issues, the interconnection of carbon markets could sharply increase a country’s cost of using carbon, erode the competitiveness of domestic offices, and consequently affect employment and the economy. For this reason, some countries may be hesitant to join international carbon markets.”
However, owing to the global externalities of climate change, carbon‑emission allowances inherently possess the characteristic of free international circulation. Industry experts have long called for international cooperation among carbon markets to enhance their efficiency.
At the 13th Lujiazui Forum held in June this year, Mark Tucker, Chairman of HSBC Holdings plc, stated that he hopes the G7 meeting will advance effective carbon pricing mechanisms—such as the international transfer of carbon credits among countries and the development of voluntary carbon offset markets—to promote transparent pricing and trading.
Jean Lemierre, Chairman of BNP Paribas, also stated that determining whether and how to effectively link the world’s various carbon markets, as well as how countries can collaborate on standards and agendas to identify effective solutions, are critical issues for enhancing the efficiency of the global carbon market.
“From a physical standpoint, there’s no way to completely isolate ourselves from climate change. Even though carbon markets between countries remain fragmented, certain sectors—such as aviation—have already pioneered an international emissions‑reduction market, enabling the global purchase of carbon credits to offset their emissions,” said Zhu Weiqing, Chairman and CEO of Shanghai BaoCarbon New Energy Environmental Technology Co., Ltd., in a previous interview. According to reports, in October 2016, the 39th Assembly of the International Civil Aviation Organization (ICAO) adopted the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), establishing the first global market‑based mechanism for sector‑wide emissions reductions.
China has already begun exploring the internationalization of its carbon market.
As a core member of the Paris Agreement, China has actively fulfilled its carbon‑reduction commitments, set “dual carbon” goals to accelerate decarbonization, and launched the national carbon market on July 16 this year. As of October 22, the national carbon market had recorded cumulative transactions of 19.1106 million tonnes of carbon emission allowances, with a total transaction value of RMB 863 million.
While accelerating the development of the national carbon market, China has also placed the exploration of its internationalization on the policy agenda.
On September 1, the General Office of the Hainan Provincial People’s Government forwarded the “Implementation Plan for Carrying Out the Opinions on Financial Support for Hainan’s Comprehensive Deepening of Reform and Opening-Up,” formulated by the Haikou Central Branch of the People’s Bank of China, the Hainan Provincial Local Financial Regulatory Bureau, the Hainan Regulatory Bureau of the China Banking and Insurance Regulatory Commission, the Hainan Regulatory Bureau of the China Securities Regulatory Commission, and the Hainan Branch of the State Administration of Foreign Exchange. The plan calls for establishing an international carbon‑emissions‑rights trading platform in Hainan, emphasizing a differentiated development strategy and linking the national carbon‑trading market with the international market.
According to the feasibility study meeting on the establishment of an international carbon‑emissions‑rights trading platform held in Hainan in July 2019, the platform will closely align with the central government’s vision of positioning Hainan’s carbon‑emissions‑rights market as “international,” while exploring mechanisms for attracting overseas investors and facilitating interconnected trading with global carbon markets.
On September 14, the People’s Government of Guangdong Province, in its “Action Plan for Deepening Market-Based Allocation Reform of Capital Factors,” also stated that it would explore the development of an international carbon market integrating spot and futures trading; build upon the foundation of Guangdong’s carbon emissions trading market to study the establishment of a carbon emissions trading market in the Guangdong-Hong Kong-Macao Greater Bay Area; encourage investors from Hong Kong and Macao to participate in Guangdong’s carbon market; and establish a cross-border carbon‑emissions‑rights trading mechanism.
Pan Yuhang told reporters, “The development of the Greater Bay Area carbon market leverages the Pearl River Delta’s unique geographical advantages, enabling the inclusion of international investors from Hong Kong and Macao in cross-border carbon‑emissions‑rights trading.”
Zhu Weiqing also told reporters that China is exploring two approaches to connecting with the international carbon market: one involves mutual recognition of carbon allowances—under this model, European emissions‑trading entities could purchase Chinese carbon credits to offset their emissions, though such arrangements remain difficult to implement at present; the other entails facilitating cross‑border capital flows, allowing foreign investors to participate in China’s carbon‑market trading.

Li Keqiang: Promote the establishment of a modern system encompassing animal husbandry, superior breed development, disease prevention and control, and processing and distribution.
The National Conference on Animal Husbandry and Fisheries was held in Chongqing on October 22. Li Keqiang, Member of the Standing Committee of the Political Bureau of the CPC Central Committee and Premier of the State Council, issued an important instruction. The instruction emphasized that animal husbandry and fisheries are vital industries that underpin both national economic development and people’s livelihoods; they directly affect the “vegetable basket” of ordinary households, contribute to increasing incomes and improving the well-being of farmers, herdsmen, and fishermen, and serve as an essential foundation for maintaining overall price stability. In recent years, China’s comprehensive production capacity in these sectors has continued to strengthen, resulting in a rich and diversified supply of meat, eggs, milk, and aquatic products that effectively meets the consumption needs of urban and rural residents. It is imperative to adhere to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, earnestly implement the decisions and arrangements of the CPC Central Committee and the State Council, rigorously enforce the provincial‑level responsibility system and the mayor‑in‑charge system for ensuring adequate supplies, stabilize and improve long‑term support policies, and promote the establishment of modern systems for livestock and aquaculture, superior breed development, disease prevention and control, and processing and distribution. These efforts will foster high‑quality development of the animal husbandry and fisheries sectors, comprehensively enhance the capacity to increase production and ensure stable supplies of livestock and aquatic products, and better meet the evolving consumption demands driven by rising living standards.
Hu Chunhua, a member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, attended the meeting and addressed the attendees.

Xi Jinping: Focus on ensuring stable coal and electricity supplies and strictly curb the reckless launch of “two high” projects.
On the afternoon of the 22nd, Xi Jinping presided over a symposium in Jinan, Shandong Province, on deepening ecological protection and high-quality development in the Yellow River Basin, and delivered an important speech. Xi Jinping pointed out that the provinces and regions along the Yellow River must earnestly implement the strategic plans for ecological protection and high-quality development in the basin, and unswervingly pursue a modern path of ecological priority and green development. It is essential to officely advance green and low-carbon development, driving transformative changes in the quality, efficiency, and growth drivers of the basin’s economy. Starting from both the supply and demand sides, we must effectively enforce dual-control measures on energy consumption, strictly curb the hasty launch of “high‑carbon, high‑energy‑consumption” projects, promptly and orderly adjust the energy production structure, and phase out outdated production capacities and processes with high carbon emissions. Efforts should be focused on ensuring stable supplies of coal and electricity, thereby safeguarding the smooth functioning of the economy and society.
Taxation TAXATATION
Deepening personal income tax reform hinges on fairly dividing the “cake.”
The latest round of personal income tax reform, implemented since October 2018, has now reached its third anniversary. The benefits of the reform have been fully realized, and the public’s sense of gain continues to strengthen. At present, societal attention to personal income tax reform remains high. How to further deepen this reform, better leverage its role in regulating income distribution and promoting social equity, and enhance its contribution to national governance remains a key task in tax system reform.
Individual income tax is the tax category most closely tied to the general public, affecting the interests of countless households. The latest round of individual income tax reform, launched three years ago, established a system that combines comprehensive and classified approaches, introduced six special additional deductions—covering expenses such as children’s education, major medical expenses, and elder care—and significantly raised the tax threshold (the basic deduction standard). Through this series of reform measures, a more scientific and rational tax system has been put in place, marking an important milestone.
The reforms have yielded remarkable results, with tax burdens broadly reduced for the vast majority of taxpayers, particularly those in the middle‑income and lower‑income brackets. In 2019 alone, 250 million taxpayers benefited directly, with an average tax cut of approximately RMB 1,842 per person, and these benefits have continued to accrue since then. From a broader perspective, the reforms have helped bring individual income tax rates into a more balanced range, thereby optimizing the distribution of national income and playing a key role in ensuring a fairer sharing of the economic “pie.” Notably, through annual tax reconciliation, taxpayers have gained a deeper understanding of the tax system, strengthening their awareness of the importance of paying taxes in accordance with the law.
In the pursuit of common prosperity through high-quality development, how to ensure that personal income tax fully fulfills its intended functions has become a critical issue. The central government has emphasized the need to strengthen and refine the regulatory role of taxation, social security, and transfer payments; to increase the share of the middle-income group; to raise the incomes of low-income groups; and to appropriately regulate high-income groups. In this context, taxation—particularly personal income tax—bears an important mission.
To this end, further deepening the reform of the individual income tax should be placed on the agenda without delay. In 2018, the latest round of individual income tax reform took a significant step by shifting from a purely classified system to a combined comprehensive‑and‑classified approach, adopting comprehensive taxation for wages and salaries, labor compensation, manuscript fees, and royalties. The next step is to explore how to broaden the scope of comprehensive taxation, bringing more types of income—particularly capital income—under its purview, thereby better advancing tax equity.
Economic and social development, as well as the implementation of major national policies, require a proactive response from the individual income tax system. For example, the policy on special additional deductions should be continuously refined; in particular, as a supporting measure to the three-child policy, it is necessary to study and promote the inclusion of childcare expenses for infants and young children under the age of three within the scope of individual income tax special additional deductions, thereby alleviating the financial burden of childbirth, child-rearing, and education faced by families. Moreover, the standards for these special additional deductions should be dynamically adjusted in light of factors such as inflation.
Thanks to the modernization of tax collection and administration and the optimization of taxpayer services, the efficiency of individual income tax administration has improved significantly, enabling taxpayers to file and pay their taxes quickly and conveniently with just a few taps on their smartphones. At the same time, tax-related illegal and criminal activities—such as concealing high incomes and failing to report them truthfully—have drawn widespread public attention, with instances of tax evasion and avoidance by certain celebrities frequently trending on social media. In response, it is essential to strengthen tax oversight over high-risk industries and individuals, employ targeted enforcement to crack down rigorously on tax-related violations, effectively safeguard national tax revenues, protect the legitimate rights and interests of law-abiding taxpayers, and promote social equity and justice.
As an important component of China’s tax system, the individual income tax plays a pivotal role in national governance. By continuously deepening reform, we must further refine and rationalize the individual income tax system, optimize the pattern of national income distribution, and ensure that the fruits of reform and development benefit all people more extensively and effectively.

Hainan: Consolidated Tax Filing Reduces Burdens and Boosts Efficiency in Tax Administration

Six tax types no longer require separate filings; all can be automatically reported through the electronic tax bureau. “It’s truly so convenient now,” said Wu, the finance manager of a company in Danzhou, Hainan, in a recent interview. “The consolidated tax filing is not only fast and hassle‑free but also eliminates the risk of omissions that can occur when filing each tax type individually. Plus, payments are made in a single transaction, significantly reducing administrative costs.”
This has been made possible by the Hainan Provincial Tax Service, which, starting in December last year, introduced consolidated filing for 10 tax types, including the Urban Land Use Tax, as well as integrated one‑form filing for six tax and fee categories, such as the Value‑Added Tax.
According to a responsible official from the Hainan Provincial Tax Service, Hainan is committed to driving the integration of tax return forms through data‑driven approaches. By leveraging value‑added tax and consumption tax—key tax categories—and capitalizing on their close interconnections with urban maintenance and construction tax, education surcharge, and other levies in terms of business logic and tax bases, the province has achieved unified filing of main taxes and ancillary charges on a single form. Furthermore, by aligning the tax systems and principles underlying financial and administrative taxes, and employing measures such as consolidating similar items, eliminating duplicates, and streamlining irrelevant entries, Hainan has enabled the submission of ten tax types via a single comprehensive return form.
This measure has significantly streamlined and consolidated tax return forms and data fields, reducing the number of primary forms for the original 15 types of taxes and fees from 15 to just 2. At the same time, it has reengineered and optimized the filing and payment process, fully implementing intelligent pre‑filling of return data and automatic generation of integrated return forms, thereby substantially enhancing taxpayers’ experience.
As a result, the Hainan Provincial Tax Service has among the first in the country to implement an ultra‑streamlined filing system featuring “integrated return forms + comprehensive return forms + two income tax returns.” Taxpayers can now complete tax filings for 16 types of taxes and fees using just two categories of return forms, significantly reducing both the number of filing occasions and compliance costs. This represents a substantive breakthrough in the nationwide tax‑filing framework for these 16 tax and fee categories, and will lead and drive the ongoing optimization and integration of China’s tax‑filing system.
It is understood that, compared with the separate tax‑type filing system, the implementation of the integrated “two‑form” system has reduced taxpayers’ annual filing instances by 1.88 million. At the same time, it has further strengthened the interconnections among tax types, enhanced data‑item validation, and promoted more standardized, convenient, and intelligent tax filing. Moreover, this measure helps to lower the frequency of underreporting, misreporting, and late filing by taxpayers.
A relevant official from the Hainan Provincial Tax Service stated that the consolidated filing of ten taxes—urban land use tax, property tax, vehicle and vessel tax, stamp tax, farmland occupation tax, resource tax, land value-added tax, deed tax, environmental protection tax, and tobacco leaf tax—has been implemented. These taxes have specific collection scopes and their tax bases are often small and scattered; consolidating their filings helps plug revenue‑leakage gaps and boost tax collection. Meanwhile, urban maintenance and construction tax, the education surcharge, the local education surcharge, and the cultural undertakings development fee, which are levied as additional charges on value‑added tax and consumption tax, are prone to reporting errors and omissions. By integrating these into a single form and efficiently consolidating data, the accuracy of tax returns has been significantly improved.
According to statistics, in December 2020 alone, the number of timely filings for 16 types of taxes and fees increased by 14,950 compared with the same period last year, while the number of late filings decreased by 781, and the late-filing rate fell by 0.6 percentage points. Across Hainan Province, 300,000 taxpayers can use the “six‑in‑one” tax return form to file multiple taxes in a single submission, and an additional 127,300 taxpayers can file using the “ten‑in‑one” form.
It is reported that, following the successful pilot program in Hainan, the State Taxation Administration rolled out nationwide, in June and August of this year, the integrated filing of 10 tax types—including the Urban Land Use Tax—and the one‑form integrated filing of six tax (and fee) categories, including the Value‑Added Tax.

Tibet: Promoting Online Processing of Tax-Related Services

The Tibet Autonomous Region Tax Service of the State Taxation Administration has vigorously strengthened the development of its electronic tax bureau, expanding the scope and functionality of online and mobile tax services. According to statistics, since the launch of the Tibet Electronic Tax Bureau, the agency has made 214 “non-contact” tax‑related services available online. Over 100,000 taxpayers who have completed real‑name registration have filed taxes totaling RMB 80.5 billion, and nearly 20 million transactions have been processed online, accounting for 91.95% of the total volume of tax‑related business.
In accordance with the “Opinions on Further Deepening Tax Collection and Administration Reform” issued by the General Offices of the CPC Central Committee and the State Council, the autonomous region’s tax authorities, in line with the relevant requirements of the State Taxation Administration, have proactively integrated with local “Internet Plus Government Services” platforms, vigorously advancing the establishment of a new tax and fee service system characterized by “comprehensive offline services, round-the-clock online services, and widely accessible customized services.” Recently, the autonomous region’s tax bureau’s exemplary experience—“Upgrading Electronic Tax Services to Enhance the Quality and Efficiency of Tax Administration”—was selected as a case study for exchange by the Office for Transforming Government Functions under the General Office of the State Council.
The Autonomous Region Tax Service Bureau has implemented meticulous service measures to ensure that tax and fee preferential policies are delivered promptly and easily accessible. In earnest compliance with the State Taxation Administration’s requirements for precisely targeting taxpayers with such incentives, the bureau launched the “Policy Express” feature on the electronic tax platform at the end of February this year, enabling precise categorization of applicable tax policies. To date, a cumulative total of 8.751 million policy notifications have been sent to taxpayers. Furthermore, by advancing system integration and consolidating filing forms, the bureau has enabled combined filing for ten tax types, including property tax and vehicle‑and‑vessel tax, while simultaneously integrating VAT and consumption tax filings with their respective surcharge and additional tax forms. These efforts have realized functions such as automatic pre‑filling of form data, automated tax calculation, data correlation and verification, and alerts for filing irregularities.
To promote efficient and convenient online filing and processing, the Autonomous Region Tax Service Bureau has focused on collaborative governance and streamlined the establishment of newly registered enterprises through intelligent, rapid procedures. In coordination with the Autonomous Region Administration for Market Regulation, the tax authority has launched a series of tax‑related measures to optimize business start‑up services and shorten the time required to establish a new enterprise. Under this initiative, newly established businesses across the region can submit applications for relevant tax‑related matters concurrently when registering through the autonomous region’s “One‑Stop Online Service” platform. Upon receiving information shared by the market regulation authorities, the tax department can complete six administrative tasks—including conofficeation of registration details, determination of invoice types, and issuance of invoices—thereby achieving a “single set of documents, one submission, online acceptance, and one‑stop completion” process for new‑enterprise registration. As a result, the time required for first‑time invoice application has been reduced to within 1.5 working days.
In addition, the Autonomous Region Tax Service Bureau has proactively responded to taxpayers’ needs by further expanding social security payment channels, broadening the scope of “non-contact” services, and developing an e‑tax platform web‑based social security payment module that offers 39 functions, including user management, declaration and payment, certificate issuance, and information inquiry.

Real estate tax reform pilots are underway—could the era of property speculation be coming to an end?
Some regions will launch pilot programs for real estate tax reform, with a duration of five years. Which cities will be selected as pilot sites? How will the real estate tax be levied? How much tax will your household have to pay? And what challenges remain in implementing this tax?
I. Certain regions will launch pilot programs for real estate tax reform, with a duration of five years.
On October 23, the 31st Session of the Standing Committee of the 13th National People’s Congress decided to authorize the State Council to conduct pilot programs for real estate tax reform in selected regions. Yan Yuejin, Research Director at the E-House Institute Think Tank Center, believes that this policy is of great significance, representing one of the most noteworthy measures in the broader wave of real estate system reform and deserving close attention from all sectors of society. The policy clearly sets out three key objectives for the real estate tax reform.
First, actively yet prudently advance the legislation and reform of the real estate tax. This statement indicates that the real estate tax reform will follow a gradual approach: piloting first, then expanding to nationwide implementation. Second, guide rational housing consumption and the efficient, intensive use of land resources. This suggests that housing and land‑use practices will be subject to strict regulation and guidance, with particular emphasis on curbing speculative activities such as property flipping. Third, promote the stable and healthy development of the real estate market. This underscores that the reform of the real estate tax should not be viewed merely as a fiscal‑system overhaul, but rather in conjunction with housing‑system reform and efforts to ensure the steady growth of the real estate market.
This reform has clarified the core focus of the pilot cities, encompassing all types of real estate—both residential and non-residential—while excluding rural homesteads and the houses built on them that are legally owned.
Here, three guiding principles of the reform are outlined: First, the core of the reform focuses on residential housing projects, which currently command the greatest public attention. Second, non‑residential real estate is already subject to a property tax; in this pilot phase, cities will shift from piloting a property tax to advancing broader real estate tax reform. Third, rural housing is excluded from the reform; at present, the reform pertains to housing on state‑owned construction land.
The guiding principle of this reform is clear: the State Council will formulate pilot guidelines, while local governments will draft detailed implementation rules. The pilot program will span five years, making the next five years a critical period for conducting trials in selected cities.
II. Which cities will be selected as pilot sites for the property tax?
In recent years, the overarching approach to real estate tax reform has consistently emphasized “legislation first, full delegation of authority, and phased implementation.” Meanwhile, in the article “Solidly Promoting Common Prosperity,” the government both underscores the need to “actively yet prudently advance the legislation and reform of the real estate tax” and calls for “carrying out pilot programs effectively.” This suggests that the pool of pilot cities for the real estate tax will be expanded beyond Shanghai and Chongqing. Given the cities currently generating considerable market discussion, Zhejiang—particularly Hangzhou—is widely seen as a strong candidate for inclusion in the reform. According to Shi Zhengwen, Director of the Center for Fiscal and Tax Law at China University of Political Science and Law, the real estate tax pilot is not merely a replication of the earlier property tax pilots launched in Chongqing and Shanghai; rather, it represents a significant step forward, laying the groundwork for future real estate tax legislation.
Jia Kang has consistently maintained that, in the effort to expedite the enactment of real estate tax legislation, it would be worthwhile to pursue institutional innovations aimed at expanding the scope of pilot programs. Such measures would not only address the specific, localized needs arising from the market’s diversified landscape but also enrich the national legislative process with locally grounded experience, thereby providing a solid foundation for refining the law.
He suggests that real‑estate tax reforms could be piloted on a larger scale in Shenzhen, Hainan, and Zhejiang, as these three regions currently serve as high‑level demonstration zones at the forefront of innovation. Shenzhen is tasked, in line with central directives, with becoming a pioneering demonstration zone for a socialist market economy with Chinese characteristics; under this framework, it is clear that relying solely on administrative measures to regulate the property market is not the way forward. Shenzhen must resolve to replace administrative tools with economic ones. Hainan, meanwhile, is expected—per central guidance—to develop into the world’s largest free‑trade port. Such a port requires investment facilitation, trade liberalization, and the free flow of production factors, while also necessitating preparatory work for closed‑border operations by 2025 and the timely launch of island‑wide customs‑clearance procedures. In this sense, Hainan should likewise move swiftly to adopt economic instruments in place of administrative controls, thereby fostering the healthy development of its real‑estate market and projecting the international image it deserves. As for Zhejiang, designated as a national demonstration zone for common prosperity, it should naturally join the ranks of proactive pilot areas and undertake reforms related to the real‑estate tax.
Jia Kang argues that, in advancing this initiative, the issue of tax‑exempt deductions should be properly addressed in the legislative framework; once the legislation is enacted, local authorities should be granted ample autonomy, with implementation proceeding in stages and tailored to specific circumstances. Generally speaking, third- and fourth‑tier cities are unlikely to be among the first batch to take the lead.
III. How will the property tax be levied? How much tax will your household have to pay?
Previously, we conducted pilot programs for a property tax in both Shanghai and Chongqing, but they were not very successful. The main reasons were that Shanghai taxed only newly built homes, while Chongqing targeted only high-end residences, resulting in limited tax bases in both cities. In fact, whether to establish an exemption threshold or what the tax rate should be is not the most pressing issue. The most urgent challenge is how to implement higher taxes on existing housing stock.
As is well known, local governments’ revenue in the real estate sector primarily comes from land auctions and taxes and fees levied at the transaction stage. Property tax, by contrast, is a holding‑period levy and is intended to eventually replace revenue from land auctions. Accordingly, with the introduction of property tax, both land‑auction and transaction‑stage taxes will need to be adjusted. This also means that requiring homeowners who have already purchased properties to pay property tax would amount to double taxation.
Therefore, the introduction of a property tax will inevitably be accompanied by a major overhaul of the land‑finance system.
Once adjusted, the underlying logic changes significantly. A reduction in land‑related revenue will inevitably broaden both the scope and the rate of taxation at the holding stage. Following this line of reasoning, in the future, property tax will be unavoidable—whether for a first home or for an Nth home. This also implies that the property tax on primary residences must not be set too high.
Taking the Shanghai Songjiang property tax pilot as an example, the annual property tax payable (in yuan) is calculated as follows: the taxable area of the newly purchased housing (gross floor area) × the unit price of the newly purchased housing (or the assessed taxable value) × 70% × the tax rate. Currently, the scope of the Shanghai property tax pilot covers: starting from January 28, 2011, residential households within the administrative area of Shanghai that acquire a second or subsequent home in the city—whether it is a newly purchased existing home or a newly built commercial home—and non‑Shanghai resident households that acquire a home in the city.
Clearly, the property tax is targeted at those who own multiple properties. Ordinary citizens who hold only one home—often of modest size—are unlikely to face any property‑tax liability and may well fall outside the tax’s scope altogether. According to some experts, “the tax rate will certainly be below 1% of the total value, and in cities with higher housing prices, the taxable base may even be discounted—at a fairly substantial rate. The goal is to roll out the policy steadily and develop it gradually.”
According to an “Individual Residential Property Tax Assessment Notice” for Shanghai that circulated online in August, Mr. Wei, a homebuyer in Songjiang District, owns a residence with a floor area of 83.7 square meters. The unit price of his newly purchased property, or the assessed taxable value, is RMB 32,670.48 per square meter, and the tax rate is 0.4%. Accordingly, Mr. Wei’s annual property tax liability amounts to: 83.7 × 32,670.48 × 70% × 0.4% = RMB 7,656.65. As this demonstrates, the effective tax rate on property tax is relatively low. However, for “property speculators” who hold multiple properties, the total tax burden can be substantial—owning ten homes, for instance, entails paying property tax on all ten annually, which, when accumulated over time, can become a significant financial strain.
Taking the commercial property tax as another example, under the ad valorem system: annual tax liability = assessed value of the property × (1 − 10% − 30%) × 1.2%; under the rental‑based system: annual tax liability = annual rental income × 12%.
Since the residential property tax is still in the pilot phase, only the rough estimate presented above can be made. However, property taxes on commercial real estate such as retail shops and office buildings have been in place for some time and are enforced on a clear legal basis, which can also serve as a useful reference for calculations.

Litigation & Arbitration
Supreme People’s Court: Improving Judicial Protection Rules for Intellectual Property in Emerging Fields Such as Big Data and Artificial Intelligence
The people’s courts will, in line with advances in science and technology and the trends of economic and social development, intensify research on emerging and complex legal issues in the field of intellectual property, uphold the principle of balancing interests, and address the concerns of the public.
On the 21st, Zhou Qiang, President of the Supreme People’s Court, stated, while presenting to the Standing Committee of the National People’s Congress a report on the work of the people’s courts in intellectual property adjudication since the 18th National Congress of the Communist Party of China, that it is necessary to improve judicial protection rules for intellectual property in emerging fields and business models such as big data, artificial intelligence, and genetic technologies, and to study and refine judicial frameworks for the protection of algorithms, trade secrets, AI-generated works, and open-source intellectual property.
It is reported that the people’s courts will refine antitrust adjudication rules in the platform economy and strengthen judicial oversight in key areas such as the platform economy, technological innovation, information security, and public welfare. They will also study and improve systems to prevent the abuse of intellectual property rights, and impose penalties on unlawful practices—such as “patent traps” and “patent pirates”—that impede innovation. Furthermore, efforts will be made to address challenges in intellectual property litigation, reduce the costs of rights enforcement for right holders, and enhance the effectiveness of intellectual property protection.
The report indicates that in recent years, the number of intellectual property cases in China has risen rapidly, with a surge in novel types of disputes and a high incidence of online infringement. From 2013 to June 2021, courts nationwide accepted 2.181 million first-instance intellectual property cases and concluded 2.06 million. By fully leveraging the adjudicative functions of intellectual property courts, the people’s courts have provided robust judicial support for promoting high-quality development and meeting the public’s aspirations for a better life.
The report states that the people’s courts will intensify judicial reform in the field of intellectual property adjudication, enhance their capacity to handle IP cases, and promote the establishment of a comprehensive framework for robust IP protection. They will strengthen the integrity‑based litigation system for IP matters, effectively sanctioning the abuse of rights and malicious litigation. Furthermore, they will fully leverage the deterrent effect of criminal penalties, taking decisive and thorough enforcement measures against areas where IP infringements are particularly prevalent and widely reported, thereby ensuring adequate deterrence.
The Ministry of Public Security has issued the Opinions on Regularly Carrying Out the Campaign to Eliminate Organized Crime and Evil Forces.
To thoroughly implement the decisions and arrangements of the CPC Central Committee, and in accordance with the “Opinions on Regularly Carrying Out the Campaign to Eradicate Organized Crime and Evil Forces and Consolidating the Achievements of the Special Campaign,” issued by the General Office of the CPC Central Committee and the General Office of the State Council, the Ministry of Public Security recently formulated and promulgated the “Opinions of the Ministry of Public Security on Regularly Carrying Out the Campaign to Eradicate Organized Crime and Evil Forces” (hereinafter referred to as the “Opinions”), thereby making arrangements and deployments for public security organs to conduct this campaign on a regular basis.
The “Opinions” emphasize the need to maintain an unwavering, high‑intensity crackdown on organized crime and evil forces. They call for a more proactive offensive, focusing enforcement efforts on the most egregious criminal activities perpetrated by such groups—those that have drawn the strongest public outrage and condemnation. The document stipulates that investigations into cases involving organized crime and evil forces shall be conducted under the principle of local jurisdiction and responsibility, with each case handled by a dedicated task force. It also strengthens oversight and supervision: the Ministry of Public Security annually places a number of major, high‑profile cases involving organized crime and evil forces under direct supervision, and for particularly serious or complex cases, it submits them to the National Anti‑Organized Crime Office for special oversight. Furthermore, the campaign will resolutely dismantle protective umbrellas and networks, integrating the fight against organized crime and evil forces with anti‑corruption efforts. Finally, investigative work and asset‑seizure operations must proceed in tandem, ensuring the comprehensive recovery of illicit proceeds and the thorough eradication of the economic foundations of these criminal organizations.
The “Opinions” stipulate that efforts to identify and verify leads must be effectively strengthened and standardized. This includes broadly gathering information, ensuring smooth reporting channels, and further encouraging the public to report criminal activities by organized crime and evil forces, as well as their “protective umbrellas.” The verification process should be standardized, with timely classification and screening of leads related to organized crime and evil forces. Responsibilities for verification must be clearly assigned: dedicated task forces should be established, with specific tasks, requirements, and accountability delineated for each item. In addition, random inspections and follow-up reviews should be conducted, with higher-level public security organs intensifying oversight of lower-level agencies’ lead‑verification work.
The Opinions call for resolutely eradicating the conditions that give rise to organized crime and evil forces. They emphasize rectifying areas of public security disorder, making every effort to curb the spread and interweaving of such crimes, and fostering sustained improvements in social order; rigorously preventing emerging forms of crime by severely cracking down, in accordance with the law, on organized‑crime activities conducted via information networks, and establishing an integrated online‑offline model for prevention, crackdown, and control; consolidating grassroots governance by closely linking the campaign against organized crime and evil forces with the strengthening of grassroots organizational development, thereby preventing these criminal elements from infiltrating community-level institutions; and promoting root‑cause governance by leveraging respective functional roles, enhancing information sharing and coordinated efforts with regulatory authorities in relevant sectors, and jointly advancing targeted rectification campaigns within those sectors.
The Opinions require that case handling must always be conducted strictly in accordance with the law and in a standardized manner. This entails accurately applying the law, rigorously adhering to legal and policy boundaries, and fully implementing the criminal policy of combining leniency with severity; standardizing evidence collection and proactively adapting to a trial‑centered criminal procedure system by comprehensively gathering evidence in accordance with the law; safeguarding the legitimate rights and interests of private enterprises and ensuring the lawful exercise of defense counsel’s professional rights; instituting dedicated case‑file recording and adopting a full‑process recording system for cases involving organized crime and evil forces; and strengthening guidance on case handling by regularly organizing inspections of law enforcement and case‑handling practices in key cases related to organized crime and evil forces, thereby effectively raising the overall level of law enforcement and case management.

The Ministry of Public Security is deepening the “separation of licenses and permits” reform, aiming to achieve full electronic issuance of business-related licenses and permits by the end of 2022.
Recently, the Ministry of Public Security issued the “Implementation Plan for Deepening the ‘Separation of Licenses and Permits’ Reform to Further Stimulate the Vitality of Market Entities” (hereinafter referred to as the “Plan”), which aims to expand the scope and sectors in the public security field where post‑permit reductions and streamlined approval procedures are implemented. The Plan stipulates that efforts will be made to promote the centralized collection and use of electronic licenses and permits, refine relevant standards, specifications, and formats, and achieve full electronic transformation of business‑related licenses and permits by the end of 2022.
The Plan specifies that, nationwide, 12 business‑related licensing matters—including the issuance of special‑industry licenses for pawnbroking and the hotel industry—will undergo reform of the approval system through four approaches: direct cancellation of approvals, conversion of approvals to filing requirements, implementation of a notification‑and‑commitment mechanism, and optimization of approval services.
The Plan stipulates that the issuance of special‑industry licenses for pawnbroking will be directly decoupled from administrative approval; the issuance of security‑training licenses will shift from an approval process to a filing‑based system; and the issuance of special‑industry licenses for the hotel industry, the seal‑carving industry, and the review of information network security for internet access service venues will adopt a notification‑and‑commitment approach, whereby, upon the applicant’s voluntary commitment to meet the licensing requirements and submission of the requisite documents, a licensing decision will be rendered on the spot. Furthermore, for seven business‑related licensing matters—including the issuance of security‑service licenses—approval services will be further streamlined: the processing time for security‑service license approvals will be shortened from 30 working days to 20, and applicants seeking permits for blasting operations will no longer be required to submit documentation such as proof of past blasting project performance, evidence of the technical director’s professional experience, or certificates of qualification for personnel. Additionally, applications for the establishment of commercial shooting ranges, licenses for the manufacture of civilian firearms (and ammunition), licenses for the distribution of civilian firearms (and ammunition), permits for the manufacture, sale, acquisition, and importation of crossbows, and licenses for the sale of specialized products for computer information system security will all be processed entirely online, from application through approval.
The Plan specifies that, within the free trade pilot zones, the review and approval process for information network security of Internet access service venues will be directly abolished, and the issuance of special‑industry permits for seal‑making businesses will be changed from an approval requirement to a filing requirement.
The Plan requires public security organs at all levels to strengthen the systematic integration and coordinated support of reform measures, implement list-based management of business‑related operating permits, and ensure that no restrictions are imposed on enterprises’ entry into relevant industries beyond those listed, thereby enabling businesses to fully benefit from the reforms. It calls for advancing the aggregation and use of electronic licenses and certificates, refining the relevant standards, specifications, and formats, and achieving full electronic transformation of enterprise‑related licenses and certificates by the end of 2022. Furthermore, it emphasizes innovating and reinforcing ex‑ante, in‑process, and ex‑post supervision, clarifying regulatory responsibilities, improving supervisory approaches, formulating nationwide, unified, concise, and easily implementable regulatory rules, and establishing sound national standards covering technology, security, governance, products, services, and other areas to provide clear guidance for oversight.
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A series of important meetings have been held in quick succession, signaling three key trends in the second phase of the education and rectification campaign for political and legal personnel.
How can we ensure that the vigorous nationwide campaign to rectify and improve the political and legal forces avoids mere formalism and leaves no hidden risks? This has long been the paramount concern at all levels. Since its official launch in mid-August, the second phase of this campaign, under strong top-down leadership, has continued to deepen, with a series of high‑profile meetings held in rapid succession. One clear trend is evident: strengthening political development remains the top priority.
Among these, the most recent meeting was held on October 17, when the National Education Rectification Leading Group placed a strong emphasis on “political development.” At a special session, it issued clear directives to take decisive measures to resolutely eliminate the harmful influence of negative trends and to strive to build a loyal, clean, and responsible elite force in the political and legal sectors.
At present, the second nationwide campaign to rectify and improve the political and legal teams has entered a critical phase of tackling tough challenges, with eradicating the harmful influence of corrupt practices as its top priority. Key departments and key provinces and municipalities have also convened special meetings.
Among these measures, on October 21, the Ministry of Public Security convened a warning‑education conference for its directly affiliated organs, emphasizing that Party discipline and state law constitute an inviolable “bottom line,” a “red line,” and a “high‑pressure line” that no one may cross, and that within the Party, no corrupt element will be allowed to find refuge. It is imperative to draw profound lessons from the serious disciplinary and legal violations committed by Sun Lijun and others, focus on loyalty, integrity, and responsibility, courageously engage in self‑revolution, and further strengthen political policing and comprehensively enforce strict governance of the police force.
In the preceding four days, at an expanded meeting of the Party Committee, the Ministry of Public Security emphasized that eradicating the harmful influence of Sun Lijun must be treated as the top priority in the Party history study and education campaign, the police force’s education and rectification drive, and the medium- to long-term corrective measures arising from the central inspection. It was designated as a key indicator for assessing whether these efforts yield tangible results and was placed at the forefront of all related work.
“The CPC Central Committee’s rigorous investigation and prosecution of the serious disciplinary and legal violations committed by Sun Lijun and others represent a major achievement in the education and rectification campaign within the political and legal system and in the ongoing fight against corruption.” At both of the aforementioned meetings, Sun Lijun and others were repeatedly named.
At present, measures to combat political corruption—thoroughly investigating both individuals and cases—are being implemented and yielding tangible results. Emphasizing political development and earnestly eradicating the harmful influence of past misconduct epitomize the steady progress of the second nationwide campaign to rectify the political and legal teams. If one were to summarize the more than two months since the launch of this second round of education and rectification in three words, they would be—
Keyword 1: Higher
As a ship reaches the midstream, the currents grow fiercer. With a group of black sheep having been purged, the importance, necessity, and urgency of the education and rectification campaign within the political and legal system have been all the more underscored.
As the “power centers” of the political and legal sectors, central and provincial-level political and legal organs are also targets of the second phase of the education and rectification campaign. They constitute an essential component of the nationwide effort and directly determine its success or failure. In response, the National Leading Group for the Education and Rectification of the Political and Legal Forces made its position unequivocally clear from the outset: uphold high standards and impose stringent requirements.
Less than a month after its official launch, on September 10, the sixth director’s meeting of the National Education and Rectification Office for Political and Legal Personnel sharply identified “eight key shortcomings and weaknesses,” including “incomplete eradication of harmful influences” and “a small number of case leads coupled with difficulties in tackling tough cases.” On October 8, the second day of work following the National Day holiday, the national conference on advancing the second phase of education and rectification within the political and legal system was held, calling for intensified efforts to press ahead with priority tasks on schedule and ensure tangible results.
Time and again, high‑profile meetings have sent a clear signal: those in positions of power must not operate outside the bounds of rules and oversight; on the contrary, they should set an example from a higher vantage point, demonstrating profound respect for Party discipline and state law.
Keyword Two: Tighter
Investigation, rectification, and reform constitute the most protracted and policy‑rich critical phase of the education‑and‑rectification campaign within the political and legal system. To advance this effort effectively, it is imperative to tighten the accountability chain by ensuring that each level assumes responsibility, with policies cascading down and responsibilities being officely enforced at every tier.
Ensuring accountability is a recurring theme at every meeting. At the national conference on advancing the second phase of the education and rectification campaign for political and legal personnel, it was once again emphasized: “The effectiveness of the second phase hinges on how officely leadership responsibility is enforced. Local Party committees must earnestly assume primary responsibility for the education and rectification efforts in their respective regions, further strengthen organizational leadership, and maintain office control over direction, policies, and progress, thereby driving the campaign forward with even greater vigor.”
At previous meetings, the Leading Group for the Education and Rectification of the National Political and Legal Teams put forward highly specific requirements. For example, the work ledger must include “five lists,” covering prominent problems in key areas as well as persistent deep-rooted issues within the respective systems and units. The group also mandated that leading officials of the Leading Group and its office, along with members of the leadership teams of central political and legal organs, conduct thorough field investigations, carry out successive rounds of heart-to-heart talks, and assume responsibility for handling priority cases under special supervision.
The meticulous planning of each task and the sustained maintenance of a high-pressure deterrent have sent a clear signal: the second nationwide campaign to rectify the political and legal teams will leave no room for perfunctory measures, demonstrating unwavering determination and robust efforts to address systemic problems.
Keyword Three: More Practical
Identifying and rectifying problems is not an end in itself; rather, it is a means to pinpoint the root causes of malfeasance, uphold institutional mechanisms for overseeing power, personnel, and operations, and fundamentally strengthen the safeguards against abuse of authority, thereby forging a politically loyal, impeccably clean, and utterly dependable elite force in the political and legal sectors.
The National Leading Group for the Education and Rectification of Political and Legal Personnel has repeatedly emphasized that establishing and improving systems and mechanisms must be integrated throughout the second phase of the education and rectification campaign, seamlessly combined with investigation, correction, and remediation, and advanced in a coordinated manner. It is essential to conduct an in-depth analysis of the systemic issues revealed during the campaign and, through the formulation of sound rules and regulations, thoroughly close existing loopholes.
At present, the effort to elevate problem‑solving at the “point” level into systemic and institutional reforms at the “area” level has begun to yield tangible results. The National Education Rectification Office and central political and legal organs are leading the formulation of 24 institutional tasks covering areas such as enhancing the competence and professional qualities of law enforcement and judicial personnel, upholding integrity and enforcing discipline, addressing the “six persistent problems,” and strengthening checks and oversight over law enforcement and judicial activities. Among these, five measures—such as promoting exchanges of leading cadres in political and legal organs at the city and county levels and strictly implementing the “Three Regulations” on preventing interference in judicial affairs—have already been promulgated. Meanwhile, in tandem with deepening the implementation of these 24 systems and tackling prominent sector‑specific issues within their respective lines and systems, they have also spearheaded the development of 192 additional institutional checklists. In accordance with the requirements of these lists, provincial education rectification offices, drawing on local conditions, have issued relevant regulations and detailed implementation rules to ensure the thorough and meticulous execution of all established systems.
General Secretary Xi Jinping has stated: “As the world’s largest political party, our Party cannot be defeated by any external force; the only ones who can bring it down are ourselves. The real problem is not the existence of problems, but rather the unwillingness or inability to confront them head-on, and the failure to address them.”
This large-scale campaign to rectify and strengthen the political‑legal workforce has drawn widespread public attention, not only because it concerns the internal integrity of the political‑legal system, but also because it directly affects the public’s sense of fairness and justice, as well as every aspect of social security and stability. Every political‑legal officer who has undergone this rectification process is sure to develop fresh insights into the “Golden Shield,” the “Great Wall,” and the “Balance Scale.” Enabling those who are capable to act and empowering those who wish to serve will be one of the most valuable legacies of this campaign.
The Supreme People’s Procuratorate has issued the “List of Prohibited Professions for the Spouses, Children, and Spouses of Children of Procuratorial Personnel.”
To comprehensively implement Xi Jinping’s Thought on the Rule of Law and further deepen and solidify the nationwide procuratorial organs’ efforts to address persistent problems and systemic malpractices in the course of their education and rectification campaigns, the Supreme People’s Procuratorate recently issued the “List of Prohibited Professions for the Spouses, Children, and Spouses of Children of Procuratorial Personnel” (hereinafter referred to as the “Prohibition List”) and circulated a notice requiring procuratorial organs at all levels to earnestly implement it in light of their specific circumstances.
The “Prohibited‑Occupation List” is grounded in the statutory duties and practical work of the procuratorial organs, focusing squarely on the “key minority” of leading cadres and the “high‑risk zone” of exercising prosecutorial power. It sets out a negative list, highlights regulatory priorities, closely monitors risk points, and rigorously establishes an integrity‑based bottom line for prosecutorial conduct. The list regulates the professional activities of the spouses, children, and their spouses of all levels of procuratorial personnel nationwide. Its aim is to promote comprehensive oversight by prioritizing key areas and to drive overall improvement through targeted measures; by standardizing the business and enterprise‑related activities of the spouses, children, and their spouses of leading cadres, it seeks to further refine cadre management systems and mechanisms and to strengthen institutional safeguards.
The formulation of the “List of Prohibited Activities” strictly adheres to the Regulations on Disciplinary Sanctions of the Communist Party of China, the Law of the People’s Republic of China on Prosecutors, and the central regulations governing the business activities and enterprise‑establishment practices of the spouses and children of leading cadres, as well as their spouses, ensuring that all measures are grounded in law and that the spirit of the central authorities is implemented without distortion or deviation.
The “Prohibited‑Occupation List” comprises seven articles and, in accordance with the principles of tiered classification, clearly defines the scope of professional activities for the spouses and children of prosecutors at all levels nationwide, as well as for their spouses. The list upholds stringent standards without undue expansion or cascading restrictions, while also emphasizing simplicity and convenience to avoid excessive complexity and minutiae, thereby ensuring strong guidance and practical applicability.

Regarding the Issuance of the “Regulations on the Spouses and Children of Procuratorial Personnel”
Notice on the List of Prohibited Industries for Public Officials and Their Spouses
People’s Procuratorates of all provinces, autonomous regions, and municipalities directly under the central government; People’s Procuratorate of the Xinjiang Production and Construction Corps:
The “List of Prohibitions on Employment for the Spouses, Children, and Spouses of Children of Prosecutors” has been reviewed and approved by the Leading Group for the Education and Rectification Campaign of the National Political and Legal Teams. It is hereby issued; please comply accordingly.
Spouses, children, and the spouses of children of prosecutors
List of Prohibited Industries
I. The scope of business prohibitions applicable to the spouses, children, and spouses of children of cadres at or above the department‑level in the Supreme People’s Procuratorate and its directly affiliated units shall be implemented in accordance with the relevant provisions of the CPC Central Committee on regulating the business activities and enterprise‑establishment practices of the spouses, children, and spouses of children of leading cadres in central government organs, as well as the relevant provisions of the Supreme People’s Procuratorate on the scope of business prohibitions for the spouses, children, and spouses of children of leading cadres.
II. The scope of the business‑prohibition regime applicable to the spouses, children, and spouses of children of leading cadres at or above the deputy director‑general level in local procuratorial organs shall be implemented in accordance with the relevant provisions of the Central Committee on regulating the business activities and enterprise‑establishment practices of the spouses, children, and spouses of children of leading cadres at the provincial, autonomous region, and municipality levels, as well as with the pertinent regulations issued by the Organization Departments of the Party Committees of the respective provinces, autonomous regions, and municipalities directly under the central government.
III. The spouses, parents, and children of leading cadres and prosecutors at all levels of the people’s procuratorates shall not serve as partners or founders of law offices within the jurisdiction of the procuratorate where they are employed, nor shall they, within that jurisdiction, act as litigation agents or defense counsel in their official capacity as lawyers, or provide any other paid legal services to parties in litigation cases.
IV. The spouses and children of leading cadres in people’s procuratorates at all levels, as well as their spouses, shall not engage in any direct economic transactions with the units where such cadres are employed or with units under their jurisdiction.
V. The spouses and children of leading cadres in people’s procuratorates at all levels, as well as their spouses, shall not engage in any business or enterprise‑related activities that might compromise their lawful and impartial performance of official duties.
VI. Prosecutors shall not, by virtue of their official authority or position, provide convenience or preferential treatment to their spouses, children and their spouses, or other close relatives and persons with whom they have a specific relationship, for the purpose of engaging in business, establishing enterprises, or pursuing other commercial activities, nor shall they seek benefits on their behalf.
VII. In this list, the term “leading cadres of people’s procuratorates at all levels” refers to members of the leading bodies and members of the Procuratorial Committee of people’s procuratorates at all levels.

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